The Australian Stock Exchange
(ASX) has many responsibilities in running an orderly and efficient stock
market. One area in which it is particularly vigilant is in ensuring that
all participants; brokers, clients and companies comply with the requirements
of the ASX and the official body that empowers it, the Australian Securities
& Investments Commission (ASIC).
The Surveillance Department of the ASX is responsible for ensuring
that the rules of the ASX and Corporations Law, which is a piece of legislation
concerning companies and financial markets, is adhered to. Therefore,
close monitoring of the market and stockbrokers is required. The staff
in the Surveillance Department are particularly interested in significant
and unexplained movements in stock prices and volumes. If such a movement
is noted, it is the responsibility of the Surveillance group to commence
preliminary enquiries. Members of the Surveillance team will review publicly
available information that may have caused this movement first, and if
no legitimate reason can be found there, they then begin an investigation
into the cause using other sources of information unavailable to the public.
uses ISYS:desktop to assist in these investigations. ISYS:desktop allows
the Surveillance team to search through large volumes of data quickly
and easily to find exactly what they need. With full text search facility
and hit highlighting complete with hit-to-hit navigation, ISYS gives instant
accurate results as well as facilitating discovery of associations or
links between seemingly unrelated information.
records going back as far as 1989, the ASX has approximately 16.9 GB of
data to be searched via the LAN. Most of this material is Word and Excel
documents with the occasional HTML file from a market information vendor.
When an incident comes to their attention, investigators are able to perform
quick and accurate searches to check if there is any prior Surveillance
documentation relating to the company, the relevant brokers or their clients
and look for any previous enquiries made concerning any such party. If
a possible breach of the ASX rules or the Corporations Law has occurred,
any prior investigations may be relevant to the current matter.
useful feature of this system is that staff can search for cases with
similar circumstances to
the one currently being reviewed. This ensures consistency in the way
cases are handled as well as providing a way of sharing knowledge. The
discovery process in a similar case may well help in the pursuit of the
current one. What was discovered, or the modus operandi, may provide possible
avenues of investigation for a current case.
greatest advantage of all of this is how fast this can happen. At the
press of a button, staff can have this information at their fingertips.
Traditionally one would have to search through copious files of notes
in countless filing cabinets. Finding a name may be difficul, but finding
a similar case to yours could be near impossible unless you were to read
every single file. "ISYS lets us search our data effectively and
quickly," said Richard Flynn, Senior Analyst. "It also provides
us with an accurate historical database of previous investigations. We
are far more effective as a result."